Pfizer Inc (PFE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.19% | 49.25% | 65.77% | 62.08% | 79.26% |
| Operating profit margin | 23.48% | 5.74% | 39.90% | 30.55% | 25.37% |
| Pretax margin | 12.61% | 1.81% | 34.61% | 29.91% | 17.89% |
| Net profit margin | 12.62% | 3.62% | 31.27% | 27.04% | 16.75% |
Pfizer Inc's profitability ratios reflect fluctuations over the years. The gross profit margin decreased from 79.26% in 2020 to 49.25% in 2023 before recovering to 74.19% in 2024. This indicates varying levels of efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin followed a similar trend, increasing from 25.37% in 2020 to 39.90% in 2022, then dropping sharply to 5.74% in 2023 before rebounding to 23.48% in 2024. This shows Pfizer's ability to control operating expenses and generate profits from core operations.
The pretax margin also exhibited volatility, rising from 17.89% in 2020 to 34.61% in 2022, then declining significantly to 1.81% in 2023 before improving to 12.61% in 2024. This metric indicates the company's ability to generate profits before taxes relative to its total revenue.
Lastly, the net profit margin saw fluctuations, increasing from 16.75% in 2020 to 31.27% in 2022, then dropping to 3.62% in 2023 before rising to 12.62% in 2024. This ratio reflects Pfizer's ability to convert revenue into net income.
Overall, while Pfizer's profitability ratios experienced variability, the company displayed resilience by adapting to changing market conditions and improving profitability in the latter years of the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.00% | 1.48% | 20.30% | 13.68% | 6.89% |
| Return on assets (ROA) | 3.76% | 0.94% | 15.91% | 12.11% | 4.55% |
| Return on total capital | 12.60% | 3.67% | 37.60% | 33.16% | 13.42% |
| Return on equity (ROE) | 9.11% | 2.38% | 32.79% | 28.47% | 11.10% |
Pfizer Inc's profitability ratios, based on the provided data, demonstrate fluctuating performance over the five-year period analyzed.
The Operating return on assets (Operating ROA) increased from 6.89% in December 2020 to peak at 20.30% in December 2022, before decreasing to 7.00% by December 2024. This ratio indicates the company's ability to generate operating profit from its assets.
Return on assets (ROA) also saw a similar trend, starting at 4.55% in December 2020, increasing to 15.91% by December 2022, but dropping to 3.76% in December 2024. ROA measures the company's overall efficiency in generating profits from its total assets.
Return on total capital peaked at 37.60% in December 2022, showing an increasing trend from 13.42% in December 2020, then declined to 12.60% by December 2024. This ratio evaluates the company's profitability relative to its total capital base.
Return on equity (ROE) followed a pattern of growth and decline, rising from 11.10% in December 2020 to 32.79% in December 2022, then decreasing to 9.11% by December 2024. ROE reflects the company's ability to generate returns for its shareholders.
Overall, Pfizer Inc's profitability ratios indicate varying levels of performance over the years, with peaks and declines observed across different metrics. Interpretation of these ratios would require a deeper analysis of the company's financial and operational strategies in each respective period.